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Tech & Science Amazon Web Services is 'evaluating options' after Microsoft wins $10 billion JEDI contract out from under its nose

05:10  28 october  2019
05:10  28 october  2019 Source:   businessinsider.com.au

Microsoft just scored a huge upset over Amazon by winning the fierce battle over the $10 billion JEDI contract

  Microsoft just scored a huge upset over Amazon by winning the fierce battle over the $10 billion JEDI contract On Friday, Microsoft won the $US10 billion Joint Enterprise Defence Infrastructure (JEDI) contract - clinching it over Amazon, which was thought to be the frontrunner. Microsoft and Amazon had been competing for this key Pentagon contract for over a year.Even President Donald Trump got involved: He demanded more information on the deal after Republican lawmakers raised concerns. Ultimately, the deal award was delayed for further review - which the Washington Post reported was at the direction of the White House, for fears that Amazon would win.

Amazon Web Services is "still evaluating options " after the Department of Defense selected Microsoft for a $ 10 billion contract to move the It was not immediately clear what Amazon 's options might be after losing the contract . The bidding process for JEDI began more than one year

Amazon Web Services is "still evaluating options " after the Department of Defense selected Microsoft for a $ 10 billion contract to move the It was not immediately clear what Amazon 's options might be after losing the contract . The bidding process for JEDI began more than one year

a man wearing a suit and tie: Andy Jassy Andy Jassy
  • Microsoft was officially awarded the $US10 billion JEDI cloud contract with the Pentagon on Friday - marking a big victory over Amazon, believed to be the frontrunner.
  • Amazon Web Services, the Seattle-based company's multibillion-dollar business, is dominant in the market. AWS is "still evaluating options" after the decision, according to a source close to the situation.
  • It's a big loss for AWS, which drives profit for the entire Amazon empire.
  • Visit Business Insider's homepage for more stories.

Amazon Web Services is "still evaluating options" after the Department of Defence selected Microsoft for a $US10 billion contract to move the agency's database to the cloud, according to a source close to the situation.

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Amazon Web Services is "still evaluating options " after the Department of Defense selected Microsoft for a $ 10 billion contract to move the It was not immediately clear what Amazon 's options might be after losing the contract . The bidding process for JEDI began more than one year

Amazon is said to be evaluating its options after the decision. It has 10 days to decide whether or not to Amazon will be bitterly disappointed to have lost this contract , having long considered its bid to be Not only will it benefit from Jedi , but also a separate multi- billion dollar contract known as Deos.

"We're surprised about this conclusion," an AWS spokesperson said in a statement. "AWS is the clear leader in cloud computing, and a detailed assessment purely on the comparative offerings clearly lead to a different conclusion. We remain deeply committed to continuing to innovate for the new digital battlefield where security, efficiency, resiliency, and scalability of resources can be the difference between success and failure."

This contract - known as the Joint Enterprise Defence Infrastructure, or JEDI, contract - is a 10-year contract to move the Department of Defence's database to the cloud.

Trump allegedly ordered former Defence Secretary James Mattis to ‘screw Amazon’ one year before awarding a hotly contested $10 billion defence cloud contract to Microsoft

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Amazon , which calls its cloud platform Amazon Web Services , or AWS , said in a statement that it was surprised by the decision. The Pentagon said in April that only Amazon and Microsoft met its technical requirements for fulfilling the contract . In an unsuccessful legal challenge, Oracle alleged

On Friday, the Pentagon announced Microsoft had won the contract , a surprise victory over front-runner Amazon Web Services . Amazon Web Services is "still evaluating options " after the Department of Defense selected Microsoft for a $ 10 billion contract to move the agency's database

It's a big loss for AWS, which drives the majority of the profit for the entire Amazon empire - and a surprise, given that AWS was the favourite to win by most industry-watchers.

It was not immediately clear what Amazon's options might be after losing the contract. The bidding process for JEDI began more than one year ago, contenders like Oracle and IBM were eliminated from the process in April. Oracle previously launched an ultimately-failed lawsuit alleging that the JEDI contract selection process was "riddled with improprieties."

One potential course of action available to Amazon might be to protest the decision through a "request for reconsideration" with the Government Accountability Office.

Wedbush Securities analyst Dan Ives said in a note to clients that his firm "fully" expects Amazon "and others" to challenge the decision in court. It's unclear at this time how a legal challenge might work.

Amazon reported a less-than-expected profit in its third-quarter earnings on Thursday - $US4.23 a share on revenue of $US70 billion. AWS raked in $US9 billion in revenue for the quarter and was responsible for nearly 72% of Amazon's total operating income over the period.

Amazon Web Services still leads the cloud market and posted $US2.3 billion more in sales growth over the past quarter than it did in the same period of 2018.

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